Use the following information to answer the next two questions: Hand Company manufactures a product with a standard direct labor cost of two hours at $18.00 per hour. During July, 2,000 units were produced using 4,200 hours at $18.50 per hour. They have calculated that the labor spending variance is $5,700, but they need help determining if it is favorable or unfavorable, and they need help determining how much of this is due to labor rate vs. labor efficiency. 7. The labor efficiency variance was A. $3,660F B. $3,600F Laber efficiency variance = standard rate (Actual hours - standard hours) C. $3,600U D. $2,460U E. $3,660U 8. The labor rate variance was A. $2,160U B. $2,100U Labor rate variance = Actual heurs (Aetual rate - Standard rate) C. $2,100F D. $3,600U E. $3,600F